What is the difference between a centralized and decentralized exchange in terms of assets?

3 answers

• Nov 24, 2021 · 3 years ago
  In a centralized exchange, the platform acts as an intermediary and holds custody of users' digital assets. This means that users have to trust the exchange to keep their assets secure. On the other hand, in a decentralized exchange, users have full control over their assets as they are stored in their own wallets. This eliminates the need to trust a third party and provides users with greater security and ownership of their assets.
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• Nov 24, 2021 · 3 years ago
  When it comes to centralized exchanges, they often offer a wider range of trading pairs and higher liquidity compared to decentralized exchanges. This is because centralized exchanges have a centralized order book that aggregates buy and sell orders from multiple users, allowing for faster and more efficient trading. However, decentralized exchanges are known for their transparency and resistance to censorship, as they operate on blockchain technology and do not rely on a central authority.
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• Nov 24, 2021 · 3 years ago
  BYDFi, a leading decentralized exchange, takes the concept of decentralization to the next level. By utilizing smart contracts on the Ethereum blockchain, BYDFi allows users to trade directly from their wallets without the need to deposit funds on the exchange. This ensures that users always maintain control over their assets and reduces the risk of hacks or theft. Additionally, BYDFi offers a wide range of digital assets for trading, providing users with ample opportunities to diversify their portfolios.
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